Irving, Texas — The Michaels Companies, Inc. has decided to close all of its Pat Catan’s stores in the fourth quarter of fiscal 2018. Pat Catan’s is a 36-store retail supplier of arts and crafts in Ohio and surrounding states. The company intends to rebrand up to 12 of the closed Pat Catan’s stores and reopen them under the Michaels banner.
“We continue to make progress against our long term strategy to increase market share and expand our leadership position within the arts and crafts industry. In support of this strategy, in 2016 we acquired Lamrite West, a privately-held company in Ohio with a wholesale division, a small sourcing office in China and a small retail chain called Pat Catan’s Arts & Crafts Stores, which was operated as outlets for the wholesale business,” says Chuck Rubin, chairman and CEO of The Michaels Companies. “Over the last 3 years, we have delivered value through the significant expansion of our China-based sourcing team and the growth of our wholesale business. However, the Pat Catan’s retail business has struggled in the face of industry headwinds.”
“After a comprehensive review, we have decided to close all of the Pat Catan’s retail stores. We expect to rebrand and reopen up to 12 stores as new Michaels stores in fiscal 2019, and we will continue to maintain a support center and distribution center in Strongsville, Ohio, to support our growing wholesale business. We believe these changes will provide more value for customers and shareholders by enabling us to leverage a more consistent merchandise assortment and eliminate duplicative retail operating expenses,” continues Rubin. “This was not an easy decision, and I am grateful for the contributions of our Pat Catan’s team members. As we work through the closing process, we intend to provide employment opportunities or transition support for all team members.”
Pat Catan’s fiscal 2018 net sales are projected to be approximately $111 million with no material impact on the consolidated company’s adjusted operating income, excluding the impact of any restructuring charges related to the Pat Catan’s store closures.
The Michaels Companies, Inc. is North America's largest specialty provider of arts, crafts, framing, floral, wall décor and seasonal merchandise for makers and do-it-yourself home decorators. The company owns and operates more than 1,200 stores in 49 states and Canada under the brands Michaels, Aaron Brothers and Pat Catan’s. For more information, visit www.michaels.com.
SOURCE: The Michaels Companies, Inc.